June 15, 2006 10:30 AM, EDT

Indiana Supreme Court to Decide Toll Road Suit

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legal challenge to a plan to lease the Indiana Toll Road to a foreign consortium is in the hands of the Indiana Supreme Court, three weeks before the $3.8 billion deal that would be the nation’s biggest road privatization is scheduled to go through, the Associated Press reported.

he high court heard oral arguments in the case Tuesday, and Chief Justice Randall Shepard acknowledged the time pressures involved but gave no indication on how quickly the court would rule or how broad or narrow its decision might be, AP said.

Opponents seeking to block the deal on constitutional grounds want the court to overturn a lower court ruling requiring them to post a $1.9 billion bond to proceed with the lawsuit.

The state wants the justices to declare the toll lease constitutional so the deal can be closed by June 30, AP said.

State Budget Director Chuck Schalliol said that was chosen so the Australian-Spanish consortium seeking to lease the road would time to secure investments to make the deal, AP reported.

If litigation is still pending on June 30, the companies could pull out of the deal, AP said.

If the plan goes through, the state plans to use an upfront payment of $3.8 billion pledged by the venture to help pay for numerous highway and other construction projects, and the private companies would operate the toll road and collect its revenue for 75 years.

(Click here for previous coverage.)